Christmas eve is knocking at our doors and like every year, we are eagerly waiting for amazing gifts. Basically, kids are more enthusiastic about Christmas rather than us, the adults. We also like to have gifts but not like little kids. But, it’s true that it’s a waste of money and resources to give a toy to your kids every Christmas. Sure, toys are fun but within a couple of weeks, the kid will forget about the toys. Besides, how much long-term benefits are you giving to them? Zero.
You need to think differently now. After all, it's all about your child's future. You should give him/her such a gift, which can become a greater benefit for his/her future. Yes, I am thinking about a financial gift. There are many useful financial gifts that you can keep on giving. It’ll not only make him/her smile but also provide a solid financial foundation to his/her future.
Let's have the list rolling:
1. Piggy bank
Young kids love to open presents. So, there are many piggy banks out there that are neatly designed to help young kids. . Kids can learn about the segmentation of money in different categories, like saving, spending, and others. You may add a roll of coins with the gift so that the kids can immediately start learning valuable financial lessons from home.
2. Math/counting oriented games
In 2011, this game became “Educational Toy of the Year” and was honored by the Toy Industry Association. “LeapFrog Leapster Explorer” has several learning games, which can teach your child math. Your kids will be strong in math and other counting games.
3. Savings accounts for college
You can open a saving account with 529 plan for your child. You can also . Then, for every gift-giving occasion, you can add more money to the 529 plan. This will encourage your kid to save and contribute there. This gift also gives tax benefits to the recipient in some states. Your kids will learn about how compound interest works, and they'll grow a healthy financial habit.
4. Savings bond
Savings bond is a good option and it works very well in school days and during unemployment. You can’t expect big returns from savings bond, but from them, you can have the gift which can be helpful in future. , .
5. Roth IRA
One of the most important financial gifts for a teenage kid is a Roth IRA. . It’s a retirement account, which can provide benefits to the kid for several years. If the kid withdraws the money, it’ll be tax-free once he or she reaches a certain age. This is another gift that teaches the value of compound interest while it keeps on giving.
6. Stocks in a company of their choice
If your child is a grown up, you can teach him/her saving and spending lessons through investing. Provide your kid with $50 to $100 as a gift. . . If your kids are under 18, they may need to use a custodial account. Then they can pick a stock, and make the trade. This lesson will help your child understand how to earn from stock trading.